CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #3 to Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. for an amount not to exceed $400,000
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DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
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BACKGROUND:
The Electric Utility (Utility) operates 16 substations that facilitate the reliable delivery of energy to approximately 63,000 residential and commercial customers. To maintain system reliability and support ongoing infrastructure improvements, the Utility requires supplemental labor, specialized equipment, and contractor support for underground utility manhole installations, substation construction, and civil projects that fall outside the scope of existing contracts.
The City Council originally awarded Contract 23-151, Civil and Duct Work, to Meade Electric Company, Inc. on December 5, 2023, for a one-year term from January 1, 2024, to December 31, 2024, with two, two-year options to extend.
On December 17, 2024, the City Council approved the award of Option Year #1 for the period of January 1, 2025, to December 31, 2025.
On January 20, 2026, the City Council approved the award of Option Year #2 from January 1, 2026, to December 31, 2026.
Most recently, on October 6, 2026, the City Council approved the award of Change Order #1 to Option Year #2 to add funds for the civil, concrete, and foundation work required for the 138kV bus extension, the new 138kV circuit breaker, and the two transformer pads.
With Option Year #2 nearing expiration and additional labor and equipment required to support ongoing capital and emergency maintenance work, Option Year #3 is necessary to ensure continuity of operations without interruption to vital utility construction projects.
DISCUSSION:
Throughout the current contract term, Meade Electric Company has consistently performed work in accordance with the Utility’s expectations. Notable projects have included civil work for the Edward Hospital Substation Expansion and the construction of numerous foundations supporting the replacement of 138kV disconnect switches. The contractor has completed all work safely, on schedule, and without performance issues
Meade Electric Company has requested a 3% increase in unit prices for each year of the extension. Staff has reviewed this request and determined the increases are reasonable based on current labor and material cost trends, and the contractor has agreed to extend the contract under these revised rates.
The term of Option Year #3 will run from January 1, 2027, to December 31, 2028, with no option years remaining.
FISCAL IMPACT:
CIP #: Various
Civil and duct work is expensed to the Infrastructure and Operational Services accounts listed below. This work is required for both routine maintenance and capital improvements within the Electric Utility. This option year is for services in 2027 and as a result expenses associated with this award will not be realized until 2027. Although the 2027 budget is still being finalized, staff will ensure sufficient funding is included in the 2027 budget to support this award.
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Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
TBD |
|
40251300-531308 |
Electric Utility Fund |
TBD |